2. How Did We Get Here?

In August 2011, Congress passed the Budget Control Act. This temporarily raised the nation’s debt limit by $2.1 trillion. The legislation mandated that Congress reach a more long-term solution; if not, then the law calls for that collection of tax increases and spending cuts to start after running through that $2.1 trillion—this happens in December. Thus, the current situation.

Moreover, the act lowered the projected funding for many government organizations by $1 trillion and ordered the Supercommittee to find another $1.2 trillion to cut.